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Sterling Equities
Industryreal estate, sports, and media
Founded1972
FoundersFred Wilpon and Saul Katz
Headquarters
Great Neck, New York
,
US
Key people
Fred Wilpon (Chairman) and Saul Katz (President)
Websitesterlingequities.com

Sterling Equities in Great Neck, New York, is a diversified, family-run group of companies whose portfolio consists primarily of holdings in real estate, sports, and media in the New York area.[1][2] These include the New York Mets, the Brooklyn Cyclones, SportsNet New York, the New York Excelsior, Sterling Project Development, and a number of real estate investment portfolios and real estate services businesses.[1] The firm became embroiled in the Bernie Madoff Scandal exposing a relationship between Sterling Equities partners and Bernie Madoff spanning 20 years.[3] The partners eventually settled a billion dollar suit with the Madoff Trustee, Irving Picard, for $161 million dollars.[4]

Holdings and history

Sterling Equities is a diversified, family-run group of companies whose portfolio consists primarily of holdings in real estate, sports, and media in the New York area.[1] These include the New York Mets of Major League Baseball (an interest was acquired in 1980, and it was a full owner from 2002 to 2020, when Steve Cohen bought the team), the Brooklyn Cyclones, SportsNet New York (a regional sports TV network it formed in 2005), the New York Excelsior of Overwatch League,[5] Sterling Project Development, and a number of real estate investment portfolios and real estate services businesses (it has developed nearly 25 million square feet of commercial property).[1][6][7][8][9]

Citi Field

It was founded in 1972 by Fred Wilpon (Chairman) and Saul Katz (President), Wilpon's brother-in-law. [6][10][11] It has developed a number of properties, including the tower at 450 Lexington Avenue.[6][12] It built Citi Field $40 million under budget, and took over development of a Willets Point project.[6][13]

Madoff Ponzi Scheme

Sterling Equities was embroiled in the Bernie Madoff scandal. Madoff trustee Irving Picard alleged that the Sterling Equities had pocketed millions in fictitious profits. Sterling Equities had opened accounts with Bernard Madoff for themselves, their businesses, their friends and family, and business associates. Sterling was associated with 483 Madoff accounts. For example, Sterling Equities partner Greg Katz had 31 accounts with Madoff dating from 1992 and withdrew over $23 million in illegal profit.[14] The Sterling Equities opened accounts for their wives and families. Valerie Wilpon, Amy Beth Katz, and Heath Katz Knopf all had accounts with Bernard Madoff.[15] According to Picard, Sterling Equities used funds withdrawn from their wives’ accounts to meet their personal and/or business financial obligations.[16]

The Sterling Equities had a close personal relationship with Bernard Madoff. Madoff had Mets season tickets with seats near the owners box. Madoff and his wife, Ruth, traveled to Japan with the Wilpon's and Katz's. Sterling assisted Madoff with securing office space in Manhattan's Lipstick Building. The Madoff's, Katz's, and Wilpon's were involved in several charities together.[17] They attended movies together and had houses close together in Florida.[18]

By 2008, Sterling Equities had withdrawn approximately $300 million in fictitious profits.[19] In 2012, Sterling Equities including Saul Katz, Greg Katz, Fred Wilpon and Jeff Wilpon settled a lawsuit by trustee Irving Picard that alleged that they had invested in Madoff's Ponzi scheme even though it knew the returns were fraudulent.[20][6][21][22] Despite the allegations they were aware of Madoff's fraud and beneficiaries of it, Sterling asked the US Supreme Court to reverse a court decision and allow them access to a special fund set up for Madoff victims.[23]

See also

References

  1. ^ a b c d "Sterling Equities – A fully-integrated real estate operating company".
  2. ^ "Contact – Sterling Equities".
  3. ^ Kovaleski, Serge F. (2011-02-21). "Mets' Owners Guarded an Investment Pipeline". The New York Times. ISSN 0362-4331. Retrieved 2020-03-28.
  4. ^ "NY Mets owners reach revised deal with Madoff trustee". CNBC. 2016-06-01. Retrieved 2020-03-28.
  5. ^ "Robert Kraft, Jeff Wilpon Explain Overwatch League Investment". Dexerto. July 18, 2017. Archived from the original on March 27, 2019. Retrieved March 18, 2019.
  6. ^ a b c d e "Sterling Equities | TRD Research". The Real Deal.
  7. ^ "Inside the New WTC Offices of SportsNet NY and Sterling Equities". Commercial Observer. January 16, 2019.
  8. ^ Kosman, Josh (March 24, 2019). "Wilpon ups Mets stake at lower than expected $1.5B valuation". New York Post.
  9. ^ "Mets co-owner agrees to pay $180 million to up stake". New York Business Journal.
  10. ^ Ley, Tom. "Documents: Mets Owners' Real Estate Fund Was $300 Million In The Hole This Past June". Deadspin.
  11. ^ "Partners – Sterling Equities".
  12. ^ Clarke, Katherine. "Mets owner Fred Wilpon is creating a real estate presence in Brooklyn". New York Daily News.
  13. ^ "Willets Point casino sought in first Sterling Equities, Related proposal". Queens Chronicle.
  14. ^ "107. SECURITIES INVESTOR PROTECTION CORPORATION v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC," (PDF).{{cite web}}: CS1 maint: url-status (link)
  15. ^ "SECURITIES INVESTOR PROTECTION CORPORATION v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC," (PDF).{{cite web}}: CS1 maint: url-status (link)
  16. ^ "Baker & Hostetler LLP" (PDF).{{cite web}}: CS1 maint: url-status (link)
  17. ^ "SECURITIES INVESTOR PROTECTION CORPORATION v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC" (PDF).{{cite web}}: CS1 maint: url-status (link)
  18. ^ Toobin, Jeffrey. "Madoff's Curveball". The New Yorker. Retrieved 2020-02-29.
  19. ^ "SECURITIES INVESTOR PROTECTION CORPORATION v. BERNARD L. MADOFF INVESTMENT SECURITIES LLC" (PDF).{{cite web}}: CS1 maint: url-status (link)
  20. ^ Bray, Chad (December 7, 2010). "Madoff Trustee Sues Sterling Equities". The Wall Street Journal.
  21. ^ Petchesky, Barry. "How Bernie Madoff's Money Ran The Mets". Deadspin.
  22. ^ Mccullough, Andy (February 5, 2011). "Lawsuit faults Mets' parent company, Sterling Equities, in mass fraud". The Star-Ledger.
  23. ^ "Mets Owners Asks High Court For Help In Case". CBS. February 9, 2012.
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